Citigroup to invest $30 mn in Bangalore hotel project

Tuesday, 16 January 2007, 06:00 Hrs
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Bangalore: Citigroup Property Investors, the New York-based real estate investment management arm of Citigroup, announced it would invest $30 million (1.35 billion) in a luxury hotel project being developed in Bangalore.

The proposed five-star hotel, estimated to cost about $100 million (4.5 billion), will have 250 rooms and become operational in 30 months. Being developed by Nitesh Estates, it is located in the prime area of the central business district.

"Citigroup is partnering with us in the hotel project with $30 million investment in the first round of funding. It is expected to make additional investment in phases as the project gets going," Nitesh Estates managing director Nitesh Shetty told reporters here.

Citigroup Property Investors managing director for Asia-Pacific David Schaefer said the investment in the project would transform the hospitality section in India's silicon hub.

"We believe the real estate sector in Bangalore has tremendous growth potential. As one of the fastest growing integrated real estate property developers in India, Nitesh Estates will play a key role in the growth of real estate industry and raise the standards to be benchmarked with the best in the world," Schaefer said.

Designed by leading global architects, the hotel is set to offer world-class amenities. Ernst & Young is the investment adviser to the deal.

Citigroup Property Investors offers private market real estate investment strategies designed to produce superior and risk-adjusted returns in North America, Europe and Asia.

Nitesh Estates, engaged in the development of high-end residential apartments, office buildings, hotels, gated townships and retail space, recently bagged the 1 billion built-to-suit residential complex for ITC Ltd in the city.
Source: IANS
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